The more shocking aspect of that particular incident, was the ref was absolutely NOT going to even give a free kick, until the lino started furiously waving his flag.
No - not when read in conjunction with the rest of the laws.
Touching the line IS 'within' / 'inside', in all aspects of line based decisions. i.e. if the whole of the ball does not cross the line, it is still considered IN the field of play (even though most of it is not). If the keepr handles...